The operators of Party Casino are planning to cut costs across their European markets, while keeping an eye on potential openings in the U.S.
According to Reuters, BwinParty plans to save around €70m, as it beats a retreat from European countries, where regulations are currently unclear. Instead, it will concentrate on around ten European markets, rather than trying to spread itself too thinly across thirty. The Party Casino parent company is not the first gambling giant to take this approach, as rival operator Betfair is using a similar strategy, in an attempt to produce a business model which is more stable.
Despite its latest scheme, shares in BwinParty dropped by more than 5% earlier this week. The company’s CEO blames lower-than-expected revenues on their poker and casino games, following the migration to a new gaming platform in late 2012, but Norbert Teuelberger remains confident that Bwin will meet its targets, in the second half of the year.
Bwin is also looking at potential expansion in the US and is currently poised to apply for a New Jersey licence. The group is simultaneously pushing for greater clarity surrounding regulations in its largest market – Germany – where some states are attempting to restrict licence numbers and prevent operators from offering their residents anything other than sports betting.